Azerbaijan's Central Bank keeps discount rate unchanged

The Central Bank of Azerbaijan has kept its discount rate at 6.5%, leaving the parameters of the interest rate corridor unchanged.

As Report informs with reference to the Central Bank of Azerbaijan, the lower bound of the interest rate corridor has been kept at 5%, and the upper bound at 7.5%.

The decision took into account the dynamics of overall and core inflation, inflation expectations, and the balance of risks. The situation on the foreign exchange market, changes in the banking sector's liquidity position, and the latest trends in global monetary policy were also analyzed.

"Annual inflation is within the target range – 4 ± 2% – and corresponds to the forecast trajectory of the baseline scenario," the statement says.

In September 2026, annual inflation stood at 5.5%, which is 0.2 percentage points lower than the August figure. Prices for food products, alcoholic beverages, and tobacco products rose by 6.9% year-on-year, paid services by 5.1%, and non-food products by 3.6%. Annual core inflation amounted to 4.9%.

During the elapsed period of 2026, supply on the foreign exchange market significantly exceeded demand in both the cash and non-cash segments. Over nine months, the volume of cash foreign currency purchased by exchange offices from customers exceeded the volume of its sale by $759 million.

The next decision on the parameters of the interest rate corridor will be announced on December 23, 2026.